Press Release

We are pleased to announce the promotion of Emmett Donovan to FHA Deputy Chief Underwriter!  This is an incredible accomplishment and one that takes years of hard work and perseverance. As a former Vice President at Draper and Kramer Commercial Mortgage Corp., Emmett successfully underwrote all types of FHA loans and helped produce over $1 billion in HUD insured loans. In his capacity at Merchants, Emmett serves as Senior Vice President and as a voting member of the FHA Loan Committee. Emmett Donovan Emmett is a graduate of the University of Kansas and holds an MBA in Finance from the Kellstadt Graduate School of Business at DePaul University. CONGRATULATIONS EMMETT! EMMETT DONOVANSENIOR VICE PRESIDENT, FHA DEPUTY CHIEF UNDERWRITERChicago, Illinois

CARMEL, Ind. (May 9, 2019) – Mortgage banking firm Merchants Capital has arranged nearly $50 million in total financing for three assisted living communities in Ohio: The Ashford at Mt. Washington, The Ashford on Broad and The Ashford on Sturbridge. Merchants Capital secured the bridge loans on behalf of Wallick Communities, which develops affordable assisted living and memory care communities. The bridge financing allows the communities to continue leasing and reach the required time beyond construction completion in order to be eligible to be insured by the Federal Housing Administration (FHA). “Our team closed these loans in less than 70 days from the day of engagement,” said Michael R. Dury, president of Merchants Capital and the portfolio’s leading originator. “We were able to simplify the process because of our unique ability to execute the bridge loan through our parent company, Merchants Bank. During the bridge loan application process, we were able to advise them on structuring the takeout financing via FHA.” The first community, The Ashford at Mt. Washington, received $13 million in financing over 24 months. The 108-unit community is located in Cincinnati, Ohio. The Ashford on Broad received $16 million in bridge financing over 36 months. Comprised of 131 units, the community is located in Columbus, Ohio.  The third and final community is The Ashford on Sturbridge, which received $20 million in financing over 42 months. The 124-unit community opened in early 2019 and is located in Hilliard, Ohio, a middle-class suburb of Columbus. All three communities are designed to serve working- and middle-class seniors, offering rents at 15–30% below those in similar communities. In addition, by using Ohio’s Medicaid Waiver program, residents are allowed to stay once their financial resources have been exhausted. “As baby boomers age and the costs of senior health care continue to rise, the need for affordable, well-maintained communities like these are becoming more and more critical,” said Tom Feusse, CEO of Wallick Communities. “Partnering with Merchants Capital on these projects was vital to our work and fulfilling our mission of Opening Doors to Homes, Opportunities and Hope to seniors across Ohio.” Merchants Capital is a leading multifamily lender offering customized loan products for independent living, assisted living, memory care and skilled nursing projects. A variety of loan products are available to accommodate construction, rehabilitation, acquisition and refinancing of healthcare properties throughout the country.

CARMEL, Ind. (April 18, 2019) – Leading mortgage banking company Merchants Capital today announces the opening of a production office in Chicago, located at 131 S. Dearborn St. in The Loop – the company’s fourth office nationwide. Lee Oller has been hired as executive vice president to lead the Chicago team. Oller brings 26 years of experience as a Chief and LEAN Underwriter and has produced more than 350 closed transactions involving the Federal Housing Administration (FHA) and Department of Housing and Urban Development (HUD) loan platforms. She brings a deep understanding of FHA, multifamily and affordable housing that will allow Merchants Capital to grow its local presence in Chicago and regionally across the Midwest. “Merchants Capital is well known in the industry for its passion for multifamily and affordable housing,” Oller said. “The biggest draw to joining Merchants was the ability to diversify our lending products especially Fannie Mae and Freddie Mac. The additional tools at our disposal, along with Merchants commitment to growth and innovation with the support from its banking operation, Merchants Bank, made the decision easy because of the direct benefit to clients.” Joining Oller in the new Chicago office are four senior vice presidents: Susan Schnoll, Alan Cravitz, Brian Black and Emmett Donovan. Schnoll is recognized in the Wisconsin market for her HUD lending knowledge. Cravitz, Black and Donovan bring more than 80 years of combined multifamily lending experience to the team. “This veteran team complements each other and has worked together for many years,” said Oller of the employees joining her in the new Chicago office. “Our expansion to Chicago with this talented group is a very meaningful step in increasing our national lending footprint,” said Michael Dury, president of Merchants Capital. “Lee’s ability to lead is remarkable. We are very excited to introduce her team to our diverse lending products that will allow them to offer a wide variety of solutions.” This expansion follows Merchants Capital’s announcement that it is now servicing more than $10 billion in loans and was named No. 10 on the Top 25 Affordable Lenders of 2018 list by Affordable Housing Finance. The company continues to seek driven employees for a number of positions in all four offices, including New York City and Saint Paul, Minnesota. For career opportunities, visit our careers page.

To our valued customers, Since opening our doors in 1990, the Merchants Capital team has worked tirelessly to become nationally recognized as a leader and premier provider and servicer of multifamily, senior and student housing. Recently, our hard work and commitment was recognized by Affordable Housing Finance. We’re proud to announce that Merchants Capital was named in the Top 10 Affordable Housing Lenders of 2018!This accomplishment is evidence of our commitment to advancing affordable housing nationally and ranks us among the top affordable lenders in the country. In 2018 alone, our originations team closed 207 loans and generated nearly $2.6 billion in new loan production nationwide.  That included $1.10 billion in affordable housing, demonstrating a 146 percent increase in affordable housing production compared to 2017. Over the past 28 years, Merchants Capital has originated and closed more than $13.8 billion in loans. Thank you for your continued support and loyalty. We wouldn’t be where we are today without your commitment to Merchants Capital. Sincerely, Michael R. Dury, President, Merchants Capital WE ARE MERCHANTS CAPITAL A Multifamily, Affordable, and Healthcare Lender offering a direct way to access fixed rate, long-term, non-recourse financing via our bank, Merchants Bank, all with a single point of contact.

Developments to provide more than 650 affordably priced units for NYC residents CARMEL, IN (Mar. 29, 2019) – Mortgage banking firm Merchants Capital has secured financing for two affordable housing developments, totaling more than $180.6 million, in the New York City area: MEC 125th Street and Caton Flats. Both transactions executed a novel risk-share structure between Merchants Capital, Freddie Mac and New York City Housing Development Corporation (NYCHDC) as the local housing finance agency. These risk-share loans are structured as permanent forward commitments to take out the new construction loans. “The creativity of these two transactions is unparalleled. We are incredibly thankful to our partners at Freddie Mac and NYCHDC for their inventiveness, as well as to our clients for their commitment to ensuring the development of truly transformative projects,” said Mathew Wambua, executive vice president at Merchants Capital. “These projects are a testament to our continued mission to provide quality affordable housing to workforce and low-income families.” Located in East Harlem, MEC 125th Street is a 19-story, 404-unit mixed-use, mixed-income complex that will bring much needed affordable and market-rate units to this revitalized neighborhood. In coordination with NYCHDC, New York City Housing Preservation and Development (NYCHPD), New York City Economic Development Corporation (NYC EDC), Freddie Mac, Citi Community Capital, Blank Rome LLP and Sidley Austin LLP, MEC 125th Street is key in providing greater affordability to residents in Manhattan. The development was financed through a $120 million, 35-year Freddie Mac Forward Commitment loan secured by Merchants Capital on behalf of The Richman Group Development Corporation. “We are excited to be partners in what will be a remarkable addition to thriving East Harlem and to be part of the community,” said Kristin Miller, president of The Richman Group Development Corporation. “This is the culmination of the efforts of many talented people and organizations, as well as over 10 years of hard work and perseverance. It will be amazing to see this project come to fruition.” Fifty percent of the project’s apartments will be offered at rents ranging from 37 percent of the area’s annual median income (AMI) to 80 percent AMI. An additional 23 percent of units will have rents ranging from 130 percent AMI to 145 percent AMI, and the remaining 27 percent will be market rate. The development site is conveniently located one block from the 125th Street Subway and two blocks from Harlem 125th Metro North Station, providing easy access throughout the city and the greater New York Area. The second development, Caton Flats, is the much-anticipated revitalization of the Flatbush Caton Market (FCM), a destination of Caribbean commerce, entertainment and culture in New York City. The approximately 280,000-square-foot, 255-unit project is being developed by BRP Development, Urbane Development and the Caribbean American Chamber of Commerce and Industry (CACCI) in coordination with the NYCHDC, the NYCHPD, NYC EDC, Freddie Mac, Citi Community Capital, Blank Rome LLP and Sidley Austin LLP. Loan proceeds will fund the development of mixed-income housing, ground floor retail, space for community groups, a business incubator, and a new home for the Flatbush Caton Market. Merchants Capital secured the loan through the new Freddie Mac Non-LIHTC Forward Commitment on behalf of BRP Development Corporation. Non-LIHTC forwards are unfunded, forward commitments for affordable housing developed by nonprofits and subsidized, rent-restricted affordable housing that for-profit developers can use for their new multifamily construction or substantial rehabilitation projects. “The financing secures the future of Caton Flats as an incredible source of affordable housing and economic opportunity for community residents and entrepreneurs,” said Andy Cohen, director of development for BRP Companies. “In addition to providing the neighborhood with much-needed housing, Caton Flats will also serve as a center of commerce, entrepreneurship and culture for Flatbush and the surrounding community.” Ten percent of the Caton Flats apartments will be priced affordably at 37 percent AMI. Fifteen percent of the units will be set at 57 percent AMI, and another 25 percent set at 90 percent AMI. The other half of the Caton Flats apartments will have rents capped at 130 percent AMI.

CARMEL, Ind. (Mar. 29, 2019) - Mortgage banking firm Merchants Capital announces today that it has reached a major milestone. As of Dec. 28, 2018, Merchants Capital, formerly PR Mortgage & Investments, now services loans in excess of $10 billion for Merchants Bank and other investors. Since its inception in 1990, Merchants Capital has originated and closed more than $13.8 billion in loans. In 2018 alone, Merchants Capital closed approximately 207 loans and generated nearly $2.6 billion in new loan production nationwide. In 2017, the company closed more than $1.7 billion in new loans. “We are extremely proud of our servicing teams for their continued commitment to providing the highest quality of service to our borrowers,” said Michael R. Dury, president of Merchants Capital. “Reaching this milestone is not only a testament to our highly driven team, but also to our valued customers who trust us and our skilled expertise in providing a direct way to access financing via our bank, Merchants Bank, with a single point of contact.” Merchants Capital provides servicing for a variety of loan types – including Fannie Mae, Freddie Mac and FHA – to meet the needs of a diverse portfolio of affordable, multifamily and healthcare housing loans. The company’s team of professionals specialize in managing the needs of multifamily and healthcare facility loans, providing skilled expertise to investors and borrowers. This milestone comes on the heels of the company’s rebrand to Merchants Capital, which renewed and elevated the company’s commitment to providing and servicing multifamily housing. Merchants Capital also recently announced its new $25 million, 100,000 square-foot headquarters in Carmel, Indiana, opening in 2019. The development will bring an estimated 150 bank employee jobs to the Carmel Midtown area.

CARMEL, Ind. (Mar. 26, 2019) – Leading mortgage banking company Merchants Capital today announces the hiring of Lisa Lundeen as vice president of government-sponsored enterprise (GSE) portfolio management and Toni Gilbert as vice president of insurance compliance to the company’s Saint Paul, Minnesota office. These are both newly created roles. Lundeen brings more than 12 years of multifamily servicing and asset management experience to the Merchants Capital team, with a background in both permanent and construction loans, as well as knowledge of investor accounting and reporting for Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) assets. Since stepping into the role, Lundeen has transformed the GSE Portfolio Management team, which is responsible for performing financial analyses, completing inspections, monitoring repairs and escrows, processing loan events and managing risks of the company’s Freddie Mac and Fannie Mae portfolios. Lundeen will be a critical leader in improving company procedures, as well as leading the implementation of a new servicing and database management application. With the conversion to Precision LM, Merchants continues to demonstrate its commitment to leading the industry in loan servicing. Gilbert’s addition will allow the Merchants Capital team to streamline the process for loan closings and post-closing insurance renewals. Her responsibility will include reviewing insurance information to ensure compliance with Freddie Mac, Fannie Mae, the Department of Housing and Urban Development (HUD) and Merchants Bank standards. Gilbert has 16 years of insurance compliance and multifamily escrow industry experience, as well as a vast knowledge of lender requirements. “We’re excited to have Lisa and Toni in these newly created positions as we continue to expand our Twin Cities office with top talent,” said Michael Dury, president of Merchants Capital. “Providing great service to our customers is, and always will be, a top priority at Merchants Capital.  Lisa and Toni’s unique backgrounds give them an excellent perspective that will greatly impact our day-to-day activities and allow us to deliver a better product to our customers. Lundeen is a 2002 graduate of the University of St. Thomas in Saint Paul, Minnesota, where she earned a Bachelor of Arts in Business Administration degree specializing in Marketing Management. She is currently enrolled in the Mortgage Bankers Association Future Leaders Program, an executive leadership development program that delivers a comprehensive curriculum for selected managers who have shown leadership interests and abilities. Gilbert graduated from Mankato State University in Mankato, Minnesota, with a Bachelor of Science in Business Management degree and a minor in Computer Science. She is a member of the MBA Insurance Stakeholders, holds a Certified Insurance Service Representative (CISR) designation and is licensed as a Minnesota Resident Insurance Producer.

Merchants Bancorp has once again been named by S&P Global Market Intelligence as the #1 Best-Performing Community Bank in the State of Indiana for 2018, #6 nationally. Rankings are based on financials year ended December 31, 2018 for banks with $3B to $10B in assets. See the rankings at S&P Global.

We are pleased to announce that Merchants Capital's own David Hines has earned HUD’s Deputy Chief Underwriter designation!  This is a tremendous accomplishment and one that takes years of hard work and dedication.  David has been with Merchants Capital since 2011.  In his experience as an underwriter, he has underwritten all types of loans from acquisition and refinance transactions, to substantial rehab and new construction.  A graduate with Highest Distinction from the Indiana University School of Business, Mr. Hines has structured over $1 billion in commercial real estate financing over his career at Merchants Capital. David Hines David's experience with complex transactions has been an invaluable resource for our underwriting staff and we celebrate his success. THANK YOU DAVID AND CONGRATULATIONS! DAVID HINESVICE PRESIDENT, FHA DEPUTY CHIEF UNDERWRITERCarmel, Indiana

CARMEL, Ind. – Merchants Capital has formally announced the promotion of Brian Sullivan to executive vice president and chief operating officer of Merchants Capital. Since stepping into this role in August 2018, Sullivan continues to lead capital markets activities, while overseeing the execution of strategic initiatives, notably the implementation of an industry-leading, custom loan origination and servicing software. Brian Sullivan Previously, Sullivan served as the vice president of Merchants Capital and Merchants Bank of Indiana – the parent company of Merchants Capital, formerly PR Mortgage and Investments. Sullivan, who has been with Merchants Bancorp since 2013, has more than a decade of experience in project management, capital markets, and correspondent loan origination. In his new role, Sullivan is responsible for oversight of production, servicing and asset management and capital markets, with a focus on building a resilient and robust platform to support the company’s growth plans. Previously, he led the capital markets group for the company and was involved with Merchants Bancorp’s mergers and acquisitions (M&A) and corporate finance groups. “We’re thrilled to promote Brian to COO and to continue to enhance our team with top talent from within,” said Michael Dury, president of Merchants Capital. “Brian has a unique background having led our capital markets desk, executing bank and mortgage company acquisitions, and helping our parent company with its public offering.  Most importantly, Brian’s leadership abilities make this a well-deserved role at Merchants Capital and we look forward to a bright future together.” Sullivan earned his MBA from the Indiana University Kelley School of Business and his bachelor’s degree from DePauw University. Sullivan is involved civically with the Build Fund, an economic development focused CDFI, LISC Indianapolis, and the Penrod Society, which supports the arts and cultural education in central Indiana.